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Justify and calculate market price of Wal-Mart debt, equity

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Attached is Walmart's 2009 annual report.

Using the most recent Wal-Mart financial information, please justify/calculate the current market price of Wal-Mart's debt and equity, using two capital valuation models (one for debt and one for equity).

Please show calculations that support the findings, including those involving rates of return.

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The expert justifies and calculates market price of Wal-Mart debt and equity.

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Solution:

Value of debt:
We have,
Long term debt=$31,349
Long term debt due within one year=$5,848

Weighted average Interest rate on debt=4.4%
Now,
Yield to ...

Solution provided by:
Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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